Reflections on the George Building Collapse: Lessons for Risk Management and Insurance.

On May 6, 2024, South Africa witnessed a devastating tragedy in George, Western Cape, when a residential building under construction collapsed, claiming 34 lives and injuring many others. Nearly a year later, the Minister of Human Settlements released a detailed statement (April 9, 2025), outlining the root causes of this catastrophe.

For many South Africans, the incident remains a stark reminder of the critical importance of construction integrity, regulatory compliance, and risk management in safeguarding lives and property, writes Vusumuzi Ncube, Risk Engineer.

At Maksure Risk Solutions, our Risk Engineering and Engineering Insurance teams see this as a clear reminder of the value of proactive risk management. Risk engineering surveys—covering site inspections, safety audits, and compliance checks—are not just box-ticking exercises. They are vital in identifying early risks, preventing corner-cutting, and ensuring projects are built to last.

By identifying early warning signs—such as inadequate materials, non-compliance, or lapses in supervision—risk surveys play a pivotal role in reducing the likelihood of catastrophic failures, adds Vusumuzi.

The Minister’s findings on the Neo Victoria project revealed systemic weaknesses across multiple levels of the construction value chain, including deficiencies in certification processes, inspection models, technical oversight, professional accreditation, municipal approvals, material quality, soil analysis, and adherence to occupational health and safety standards. These systemic failures underscore the need for a more robust culture of accountability and proactive risk management.

From an insurance perspective, the construction industry is supported by policies designed to mitigate the financial and operational risks inherent to such projects. These include:

• Contractors’ All-Risk (CAR) Insurance, which provides broad protection against property damage, third-party liability, and unforeseen accidents.
• Public Liability Insurance, which covers injury or damage to third parties.
• Professional Indemnity Insurance, which addresses negligence or errors by architects, engineers, and other professionals.
• Workers’ Compensation, which provides essential financial and medical support for workers injured on site.

However, Vusumuzi emphasises that it is important to note that while insurance provides critical protection, it is not a substitute for quality workmanship or compliance. Poor construction practices—such as the use of substandard materials or deliberate non-compliance—may result in claims being rejected. Insurance is designed to respond to unforeseen risks, not to underwrite negligence or fraudulent activity.

The George collapse serves as a powerful call to action for all industry stakeholders—contractors, regulators, insurers, and risk managers alike.

At Maksure Risk Solutions, we believe in the power of proactive risk management, coupled with strong insurance solutions, to safeguard lives, projects, and reputations. By embedding rigorous risk engineering practices and maintaining strict compliance with regulatory frameworks, the construction industry can not only protect its people but also build more resilient and trusted infrastructure for the future.

Vusumuzi Ncube is the Risk Engineer at Maksure Risk Solutions.

Contact our team on Tel: 011 805 0086 or email info@maksure.co.za

About Maksure Risk Solutions

Maksure Risk Solutions is an Afro-Global independent specialist insurance and reinsurance broker with business footprint in Africa, Asia, East & Western Europe, South America and the Caribbean. We provide innovative and tailor-made risk solutions in Insurance and Reinsurance as well as Risk Financing and Actuarial Consulting geared towards capital management and strengthening our client’s balance sheet. Maksure is also one of the major players in Captive Management (Establishment & Management) in South Africa, Mauritius, Bermuda and various other jurisdictions. We have access into the Lloyds of London with a deep understanding of African markets. Our global nature ensures that our clients access quality capacity as well as some of the world’s latest thinking and solutions.